Tag Archives: consumer demand

Emily Newton, Revolutionized Magazine

How Collaborative Robots Can Increase Food Production Capacity

By Emily Newton
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Emily Newton, Revolutionized Magazine

As the population grows, food production capacity must likewise increase. While that’s generally good news for food manufacturers, scaling can be complex, especially amid widespread inefficiencies and labor challenges. Implementing collaborative robots in manufacturing can help overcome those obstacles.

Collaborative robots—also called cobots—work alongside human workers instead of in fully automated workflows or behind machine guarding. If food manufacturers can implement them effectively, this robot-human collaboration can make it easier to increase production capacity in the following ways.

1. Speeding Warehouse Operations

Warehouse operations are common bottlenecks, and as online food and direct-to-consumer services grow, they’ll become increasingly crucial. One of the most impactful ways cobots increase capacity in manufacturing is by making warehouses more efficient.

Cobots are especially helpful in picking. Walking accounts for most of the picking time, and it’s easy for humans to make errors in these workflows. Consequently, using cobots to manage picking while humans handle other tasks increases warehouse productivity two times over on average.

When cobots handle the most time-consuming tasks, warehouses can move more product in less time. As a result, these facilities manage rising throughput without significant delays, enabling faster growth without sacrificing shipping times or costs.

2. Mitigating Labor Shortages

Similarly, cobots can address labor shortages that currently stop food manufacturers from reaching peak capacity. Many professionals worry about the impact of robotics on jobs, but cobots augment human labor, not replace it. In addition, employees today are leaving the workforce faster than employers can replace them, so businesses need solutions apart from human workers.

Collaborative robots help by automating the facility’s most mundane or time-consuming tasks, which leaves human employees with more time to spend on other work. The factory as a whole can accomplish more as a result.

3. Minimizing Errors

In addition to excelling at repetitive tasks, collaborative robots can also handle the most error-prone tasks. Monotonous workflows—such as packaging, labeling and picking—are common in food production and not ideal for humans, who get tired and distracted easily. Using cobots in these roles instead can minimize mistakes. Fewer mistakes translate into less disruption to the workflow and fewer wasted materials. This, in turn, increases throughput, making upscaling more cost effective.

4. Improving Safety

Like conventional industrial robots, cobots can automate the most hazardous tasks in a facility to minimize injuries. Unlike traditional robots, cobots can work safely alongside humans without additional safety stops. Consequently, they minimize machine-related accidents, offering more safety than other automation systems. Food manufacturing plants will have less unplanned downtime due to workplace accidents. With more uptime, they can increase production capacity.

Automating parts of the workflow also creates more production data to analyze. Increased connectivity and data have helped manufacturers respond to foodborne illness outbreaks faster, improving the safety of consumers, as well.

5. Enabling Flexibility

Conventional robots can produce similar benefits in many of these areas but they come at the cost of flexibility. Using collaborative robots in manufacturing lets food producers enjoy the advantages of automation without sacrificing adaptability.

Fully automated workflows can take days or even weeks to adjust to new processes. Collaborative workflows can adapt much more quickly because human workers are more flexible than machines. Cobots let food manufacturers capitalize on automation’s efficiency and human adaptability, providing the best of both worlds.

That flexibility is essential when upscaling because increasing capacity will disrupt some workflows. Facilities will have to adapt as demands rise and shift, and conventional automation is too rigid to make that transition smoothly and quickly. Collaborative robots are a more reliable way forward in a disruption-prone market.

Historically, food production has not been able to automate to the same extent as other manufacturing sectors. Workflows involve too much variability to meet the sudden shifts in consumer demands. Cobots offer the flexibility and speed companies need to embrace automation.

As more food manufacturers implement cobots, it is likely that the nation’s food production capacity will grow. That growth is an essential step forward as the population rises and direct-to-consumer food shipping becomes more popular.

Pratibha Pillalamarri

Quick-Win Strategies To Propel Digital Transformation in Food Production Safety

By Pratibha Pillalamarri
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Pratibha Pillalamarri

The world’s population now exceeds 8 billion people. For the food industry, this means more than just additional mouths to feed; it also means changing consumer tastes, higher demand for more product variety, and the need to balance product safety and sustainability, along with profitability.

In a rapidly changing environment, digital solutions help companies make informed business decisions quickly. The missing component is rarely a lack of data itself. To stay competitive, and appropriately balance safety, sustainability, and profitability amid a growing population, companies need to reap the full benefit of their existing operational and process data to gain valuable insights and efficiencies. Data analytics and digital tools empower companies to collect, centralize, and extract actionable data-driven insights generated throughout the entire manufacturing lifecycle. While digital transformation can sometimes be overwhelming, there are specific steps you can take to realize important benefits, quickly.

Breaking Data Silos To Boost Efficiency

Food and beverage manufacturers generate large amounts of data during the process of turning raw materials into finished products, including information about equipment run time, product quality, and energy consumption.

Despite the need to share and analyze this data collaboratively, industrial data is often stored in separate systems, managed by different teams, and at times governed by inconsistent processes. These data silos impede collaboration, diminish quality control and safety measures, and ultimately hurt the bottom line. In a highly regulated industry, simple missteps can negatively impact brand reputation in addition to causing compliance violations and regulatory penalties.

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Consider a food manufacturer that produces packaged goods. An unplanned stoppage in production can lead to safety incidents, product contamination and losses, and energy wastage. Connecting manufacturing data across functions and generating contextual insights will result in proactive planning and maintenance scheduling.

A manufacturer with disconnected inventory management and production planning systems cannot accurately forecast product demand or adjust its production schedules. This results in missed insights and excess inventory or stockouts that lead to increased costs, and/or missed sales opportunities. In both scenarios, a robust data and digitalization strategy could reduce process disruptions or deviations, product waste and recalls, and revenue loss.

Four Steps to Get More out of Your Data

Robust data analytics and management tools can provide value across the organization. The following strategies will help ensure digital initiatives deliver maximum value nearly right away throughout the entire manufacturing cycle. These quick successes help the pave the way for long-term digital integration.

Start with small initiatives. It is usually most effective to start small when it comes to digital initiatives. Pick a single site or production line, identify an urgent pain point to solve, and develop a focused approach to applying analytics. This strategy ensures a targeted investment of resources and time, as well as the opportunity to test and refine strategies.

After initial project success, it is often helpful to step back and evaluate what worked, what did not work, and review best practices for deploying the technology at scale.

Set clear goals and metrics. Setting clear, measurable goals and metrics allows you to monitor progress. For example, a company might want to work toward reducing equipment downtime by 20% within the next six months. In addition, it’s often helpful to have a champion in the organization who will push for innovation, track progress, and serve as a motivator across the company.

Build data-driven operations. Comprehensive data-driven solutions have embedded domain expertise to make employees’ jobs easier by freeing them up for high value work. The key is to invest the time, energy, and resources in training employees effectively.

When deploying AI and other data-driven technology, focus on high-impact areas for quick wins. Centralized data management systems can seamlessly connect sensors, IoT devices, legacy systems, or other interfaces in production processes, allowing engineers and managers to focus on problem solving versus data collection and analysis.

For instance, AI-powered process analytics software can analyze process data, monitor variables that are likely to produce an off-spec product, automatically alert the team when a problem needs to be addressed, and prescribe changes to address the issue. Likewise, predictive maintenance solutions can use this data to detect equipment failures early and accurately, thereby reducing downtime events. These solutions also have built-in prescriptive capabilities to guide and empower maintenance personnel to address equipment issues in a timely manner.

Leverage data to identify areas for future innovation. Beyond solving today’s production pain points, data analytics can transform manufacturing for the future by helping companies respond to changing consumer preferences and needs, including the increase in health-conscious consumers and the global rise in food allergies. By analyzing this kind of data, the industry can identify areas where innovation is needed. And, as new products are developed, existing solutions can be leveraged to increase flexibility and efficiency in production lines for data-driven growth.

By unlocking the true value of data, companies can generate insights with their digital transformation strategies that optimize production, reduce waste, and improve profitability while ensuring consumer safety.

Emily Newton, Revolutionized Magazine

Utilizing Technology To Eliminate Food Processing Bottlenecks

By Emily Newton
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Emily Newton, Revolutionized Magazine

Food processing bottlenecks are a persistent problem in the industry. Whether due to labor shortages, shifts in consumer demand leading to product or formulation changes, or inefficient facility design, new technologies are coming to market that can help companies identify and overcome these challenges.

Overcoming Labor Shortages

A 2023 survey from Food Processing found that 40% of respondents plan to add new employees to their workforces this year. The survey highlighted the challenges companies continue to face due to labor shortages, including the inability to find enough workers and difficulty in retaining skilled employees. These problems collectively can cause food processing bottlenecks, particularly as companies seek to scale output to meet growing demand and enhance training to build employees’ skills.

Taiwan’s Taipei Medical University is using virtual reality (VR) at its food safety training center, and the technology shows promise as a faster and more engaging training tool. A professor familiar with the implementation of the technology noted that it can reduce safety-related errors and improve knowledge retention, as workers appreciate engaging in the more immersive learning style of VR compared to watching videos and reading textbook chapters.

That means it could also encourage workers to acquire new skills. That’s vital since the Food Processing survey noted that 55% of respondents have ramped up their in-house technical training in response worker shortages.

Incorporating new technologies, such as VR, may improve onboarding while also helping companies attract younger employees seeking companies that keep pace with modern times.

Digital Twins Increase Visibility

Digital twins are highly realistic models that allow companies to run various scenarios in a controlled environment before trying them in real life. They can help managers identify potential bottlenecks prior to implementing a new product or process, and can help solve existing bottlenecks by showing why an assembly line at a particular plant is less efficient than one at a nearby facility operated by the same company.

Digital twins can also help companies reduce waste. In one example, Accenture and Mars collaborated on a digital twin that enabled real-time monitoring of a filling process. That approach prevented too much product from going into a package.

When it comes to food safety, digital twins can identify insufficient food safety measures, highlighting where and how to make improvements.

One company even developed a digital twin for flavor formulations and customer response predictions. Nearly 90% of new food products remain on the market for only one year. The digital twin developed by Foodpairing was designed to predict “winning” formulations to increase the likelihood of success before introducing new food products.

Robots Supplement Human Efforts

There are limits to how fast humans can work safely and maintain stringent quality control. That’s why many food processing businesses have begun using robots to increase efficiency.

In one case, a food processor used cobots to decrease the six-hour time frame required to transition an assembly line to a different product. These robots also allowed the company to move to 24/7 production, which aligned with customer demand.

FlexCRAFT, a Dutch research program centered on using dual-arm robots for greenhouse management, food processing and packaging, has built machines with grippers that can handle various product shapes and packages.

The food processing application centers on deploying robots to separate, remove or cut various chicken parts. The team is currently developing machines to handle variations in size or type to ensure the robots can work with wings as well as thighs. Future initiatives include incorporating active learning and task planning to further improve the technology.

Food processing bottlenecks can keep companies from meeting goals and remaining competitive in a demanding marketplace. However, technology increasingly provides feasible solutions to help overcome these obstacles.

Leaders tasked with approving technological implementations should assess the most significant issues in their companies. From there, they can investigate which technologies have the most appropriate capabilities to reduce or solve those problems.

Pratik Soni, Omnichain
Retail Food Safety Forum

Top Three Visibility Challenges in Today’s Food Supply Chain

By Pratik Soni
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Pratik Soni, Omnichain

To say that COVID-19 has been disruptive would be putting it mildly. The pandemic’s sudden and seismic impact has brought major upheaval across industries—the food industry and its supply chain included.

There was the initial panic buying that drove upticks in consumer demand for which few manufacturers and grocers were prepared, resulting in widespread product shortages. With restaurants closed, distributors and suppliers were left with considerable excess inventory—most of which ended up as waste and losses. Inside production sites and plants, many had to try and maintain their output with a reduced workforce, even as demand continued to climb. Meanwhile, some plants unfortunately have had to shut down operations on account of employees testing positive for COVID-19.

In the time since the outbreak, the food supply chain has stabilized to an extent. Store shelves are continuously being replenished with products. Restaurants have started reopening with new health and safety measures. Yet even as the industry takes gradual steps toward recovery, the underlying problem that led to the magnitude of COVID-19’s impact persists: Lack of visibility. There was lack of visibility into supply and demand and what was happening upstream and downstream across the supply chain, which prevented timely, proactive action to optimize operations in face of disruption.

Looking ahead, participants across the food supply chain will need enhanced end-to-end visibility so that they can work together to get ahead of the curve. As part of gaining this visibility, they will need the transparent exchange of information and cohesive collaboration to adapt especially as the food industry continues to see shifts in consumer behavior and the marketplace in the wake of COVID-19—particularly in the following three key areas.

Food Distribution

While food producers have been working tirelessly to keep grocery store shelves and restaurant kitchens well stocked, there continues to be fluctuating availability on certain products, such as eggs, dairy, poultry and meat. This has led distributors and suppliers to increase their prices when selling these goods to stores and restaurants, who have had to then pass the additional costs on to consumers through their own price increases and surcharges, respectively. One report from CoBank, a cooperative bank part of the Farm Credit System, notes there could be as much as a 20% increase in the price of pork and beef this year due to supply issues.1 Many grocers have also implemented purchase limitations on consumers to combat shortages.

These downstream implications stem largely to uncertainty in the supply chain, with stores and restaurants unsure about available supply upstream and when they can expect to receive shipments. But if there was clearer visibility and transparency between production, distribution, transportation, food service and retail, then all parties could better anticipate and plan for supply shortages or delays. For instance, if a meat processing plant has to temporarily close due to cases of COVID-19, they can immediately communicate to the rest of the supply chain so that parties downstream can readily find alternative sources and minimize any necessary price inflations or other implications to consumers.

Consumer Demand

Even with the reopening of restaurants, people will likely choose to cook more of their meals at home. It was a trend that began with restaurant closures and will continue for the foreseeable future as consumers remain cautious of dining out. While this may bring tough times ahead for the food service industry, the grocery sector is seeing a huge lift in business. Research from restaurant management platform Crunchtime shows that, towards the end of June, restaurants were only seeing 64.5% of their pre-COVID-19 sales levels.2 At the same time, a study by Brick Meets Click and Mercatus reveals U.S. online grocery sales reached a record $7.2 billion in June, up nearly 10% over May.3

For food companies and brands, growth in the grocery sector has presented a challenge in the way of demand planning and forecasting. I’ve personally spoken with several company executives who have seen significant upticks in orders from their grocery channel partners—an increase for which they didn’t forecast—and are now struggling to adjust production levels accordingly to avoid the risk of excess production that would lead to unnecessary costs, wastes and losses. In such instances, real-time visibility into transactional activity and stock levels at the retail level would help production planners improve the accuracy of their forecasts and enable them to think steps ahead before orders come in and thereby optimally balance supply with demand. Stores would remain well stocked and the supply chain could flow in a more efficient and profitable way for all participants.

Food Handling

Without question, public health is the number one priority right now. Participants at each point in the food supply chain today need to communicate with each other, as well as to consumers, that they’re following best practices for social distancing, disinfecting and other precautions. It’s not to prevent the possible transfer of the virus via actual products, as the FDA notes there is currently no evidence of transmission through food or packaging. But rather, it’s to build greater confidence in the food supply chain—that everyone is doing their part to support individual and collective health and safety, which in turn prevents possible facility closures or other case-related bottlenecks that would inhibit consistent supply to the market.

There also has to be confidence that, amid these countermeasures for COVID-19, companies are still upholding their commitments to food safety, integrity and proper handling. What can support that confidence is data—shared data from every point in a product’s journey from source to shelf. The data should be transparent and available to all supply chain participants as well as immutable so that it is tamperproof and fully traceable should there be any problem, such as mislabeling or a foodborne illness. The data ultimately holds everyone accountable for their role in ensuring a safe food supply chain.

To achieve the level of visibility outlined above, the food industry will have to break away from legacy processes involving the siloed management of operational systems and databases. Instead, the disruption seen during COVID-19 and ongoing shifts in the marketplace should encourage companies to consider digital transformation and technologies that can enable a more cohesive and nimble food supply chain. These are technologies like blockchain, which provides a decentralized, distributed ledger to publish and share data in real time. Moreover, artificial intelligence that can leverage incoming real-time data to guide next-best actions, even when the unexpected occurs. Personally, I always return to the notion that the supply chain is a team sport. You need visibility to know what each team member is doing on the field and how to align everyone on a gameplay. The digital solutions available today offer that visibility and insight, as well as the agility to pivot as needed to obstacles along the journey from source to shelf.

References

  1. Taylor, K. (May 6, 2020). “The American meat shortage is pushing prices to unprecedented heights — here’s how it could affect your grocery bill.” Business Insider.
  2. Maze, J. (July 7, 2020). “As the coronavirus resurges, restaurant sales start slowing again.” Restaurant Business.
  3. Perez, S. (July 6, 2020). “US online grocery sales hit record $7.2 billion in June.” TechCrunch.
Chris Keith, FlexXray
FST Soapbox

COVID-19: We’re In This Together

By Chris Keith
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Chris Keith, FlexXray

It’s no secret that the COVID-19 pandemic had a major impact on industries and individuals around the world. According to the World Health Organization, as of June 21, 2020, there have been 8,708,008 reported cases of COVID-19 globally, including 461,715 deaths. In a recent article by Forbes, healthcare contributor William Haseltine stated that we are gathering personal stories and statistics right now around COVID-19 survivors who have suffered permanent injuries from the virus. Many experts believe that COVID-19 is also an economic downturn trigger. Author and financial planner Liz Frazier says that even as recessions are a normal part of the U.S. economic cycle, lasting about five and a half years on average, the possibility of a recession starting due to the outbreak would be unprecedented.1 The COVID-19 pandemic is a natural disaster that rocked the world and is a reminder of how connected people are in a global economy.

As quarantine regulations and temporary closures happened across the United States, businesses had to mobilize quickly, pivoting their strategies, distribution efforts, products and beyond to accommodate the new safety measures and external pressures. The food and beverage industry was no different. Although food manufacturers were deemed essential in the United States by Cybersecurity & Infrastructure Security Agency (CISA), manufacturers had to adapt to a new normal during the shutdown.2 Some of the biggest changes that occurred in the food manufacturing industry include fluctuating customers, prices, product and ingredient availability, packaging, distribution, and food quality and safety.

Shifting Demand, Customers and Food Pricing

Sharp changes in food prices and product availability shocked supply and demand and impacted the entire food supply chain across the United States. According to the USDA, there were record levels of demand for food at grocery stores, and, on the supply side, there has been a reduced supply of meat products over the period of quarantine as meatpacking plants faced temporary closures, decreased slaughter pace, and slower production due to COVID-19 regulations.3 Poultry prices took a sharp dip and have been rebounding, hot dog prices are at an all-time high due to increased demand, and beef prices have been climbing due to scarce supply and limited fresh production. Food pricing fluctuation is one of the largest food industry impacts felt directly by the general public and the on-premise sector. Restaurants and bars were crushed by the skyrocketing ingredient prices and mandatory temporary closures due to COVID-19.

As restaurants, school cafeterias and hotels were temporarily shut down due to quarantine restrictions, the food manufacturing industry’s most prominent customers practically disappeared. Before COVID-19, the USDA reported that in 2018, restaurants provided approximately 50% of meals consumed on a daily basis, up from 41% in 1984.4 When COVID-19 hit, consumer trends showed a monumental shift to eating at home. During the height of the pandemic, more people ordered take out from fast-casual dining places and ate from home. A recently published study reveals survey findings that suggest American’s food habits are shifting, as 54% of respondents confirmed they are cooking more, and 46% of respondents, baking more.5 As customers and demand changed, products and packaging had to follow suit.

Scores of manufacturing facilities had to rapidly respond with different products to meet changing consumer demand, despite already being in mid-production for products for restaurant kitchens, cafeterias, and the like. Most of these large-scale and wholesale products would never make it to their original, intended destinations. Manufacturers swiftly adapted their production, creating retail-ready goods from product made or intended for restaurant or fast food supply. These food production facilities had to creatively find ways to change product packaging sizes, salvaging good product with take-home cartons and containers. Some processors pre-sliced deli meat for grocery stores around the country, as markets were unable to slice the meat in-store, dealing with restrictions on the number of people who could work at any given time. The food manufacturing industry showed great ingenuity, repurposing food and getting creative in order to keep the country fed and bridge the gap in convenience shopping that consumers have grown used to.

New Distribution Pressures

There were also disruptions in the food industry’s distribution channel, and the logistics of distribution were adversely affected. Facilities faced increased pressure to have tighter production turnarounds from new consumer behavior and out-of-stock situations as many markets dealt with temporary panic shopping at the beginning of the crisis. Food manufacturing facilities have always faced tight deadlines when dealing with fresh and refrigerated product. However, COVID-19 introduced new critical, immediate needs to the food supply, and, more than ever before, facilities were pressed for time to deliver. Some facilities didn’t have enough dock loading time, and certain cold storage facilities could not meet the raised demands for dock times, making it harder to get product through the distribution channel to consumers. Shipping and logistics came at a premium. Drivers and logistics companies were at capacity with their service offerings, and unable to mobilize to meet the needs of every manufacturing company.

On top of the pressures from consumer demand, manufacturing facilities had to procure PPE (personal protective equipment) in mass for all employees and adjust employee schedules to meet new national and state-wide quarantine restrictions that strained the system. The PPE requirements are part of the distribution logistics, as plants are unable to distribute safe product without adhering to the system’s regulations. Senior Vice President of Regulatory and Environmental Affairs for the National Milk Producers Federation, Clay Detlefsen, said in an article for Food Shot Global that the whole food industry’s system has been turned on its head, as manufacturers are concerned that if they start running out of PPE and sanitation supplies, they would ultimately be forced into shutting down their food processing plants.6

Regulating Food Quality and Safety

Perhaps one of the biggest concerns surrounding the food supply chain during the height of COVID-19 for both producers and consumers was food safety. While safety and quality are always a high priority in the food industry, rising concern around the transmission of COVID-19 became a new and unprecedented challenge for food quality experts. In February the FDA declared that COVID-19 is unlikely to pass through food or food packaging, but that didn’t stop public concern.7 It was critical for food manufacturers and producers to ease public fear, keep the food supply stable and eliminate foreign material contamination that would adversely affect consumers and brand reputation. A mass recall due to foreign material contamination would have dire consequences for the strained food supply chain during this historic crisis. At the same time, the pandemic limited quality and food safety teams, as key teams had to work remotely, shift schedules had to drastically change to meet new safety regulations, production lines cut in half, and quality and safety teams had to make rushed decisions when it came to reworking product.

Some plants that faced potential foreign material contamination risked sending their product into distribution without a thorough rework, up against tight deadlines. And some plants adopted a multifaceted strategy and did something they’ve never done before: Reworked product on hold for potential foreign material contamination themselves. Many of these companies reworked product with their extra available lines, to keep as many of their workers as possible, despite the fact that food production employees are untrained in finding and extracting foreign contaminants. Inline detection machines are also typically limited to metal detection, often incapable of consistently catching many other types of contaminants such as glass, stones, plastic, bone, rubber, gasket material, container defects, product clumps, wood and other possible missing components. Food safety is of the utmost importance when a crisis hits as the food supply chain is crucial to our success as a nation and as an interconnected world. Facing new pressures on all sides, the food industry did not neglect food safety and quality, even while adopting new strategies. There was never a doubt that the industry would overcome the new challenges.

Looking Forward

The food industry has rapidly switched business strategies, swiftly turned around new products, found new ways to align product traceability and work remotely while still meeting industry standards and production expectations. Manufacturing facilities repackaged and repurposed food to keep the country fed, maintained job security for many employees and procured PPE in mass. The food industry is also full of manufacturers and plants that accomplished things they’ve never done before. There are shining examples of heroism in the food and beverage space as a growing list of food businesses, restaurants and delivery services have donated to healthcare workers on the front lines. Many large companies donated millions of dollars and pounds of food to feed their teams, their communities and the less fortunate.8 In the midst of a large obstacle, we have reached new heights and discovered new capabilities.

The challenges aren’t over. The food industry is still facing the effects of COVID-19 shutdowns on businesses even during this period of re-opening in different parts of the country. A lot of places and companies have been hit hard, some even closing their doors for good. Forbes reported at the onset of the pandemic that Smithfield Foods shut down one of its pork processing plants after hundreds of the plant’s 3,700 employees tested positive for coronavirus.8 Tyson Foods also shut down several meat processing plants under threat of the virus.8 Smithfield and Tyson were not the only ones. Food Dive has a compiled tracking system for coronavirus closures in food and beverage manufacturing facilities, recording reduced production, temporary closures, and permanent shutdowns across the industry. We expect some of the COVID-19 challenges to alleviate over time and hope that business will slowly return to normal and previously closed facilities will be able to re-open. However, we strongly hope some changes to the industry will remain: Creativity, ingenuity, resilience, adaptability, and a strong commitment to customers and partners. The bottom line is we’re in this together––together, we’re resilient.

References

  1. Frazier, L. (April 21, 2020). “How COVID-19 Is Leading The US Into A New Type Of Recession, And What It Means For Our Future.” Forbes.
  2. Krebs, C. (May 19, 2020). “Advisory Memorandum on Identification of Essential Critical Infrastructure Workers During COVID-19 Response.” Homeland Security Digital Library.
  3.  Johansson, R. (May 28, 2020) “Another Look at Availability and Prices of Food Amid the COVID-19 Pandemic.” USDA.
  4. Stewart, H. (September 2011). “Food Away From Home.” The Oxford Handbook of the Economics of Food Consumption and Policy. 646–666. Oxford University Press. doi: 10.1093/oxfordhb/9780199569441.013.0027
  5. The Shelby Report. (April 17, 2020). “New Study Reveals Covid-19 Impact On Americans’ Food Habits.”
  6. Caldwell, J. (April 16, 2020). “How Covid-19 is impacting various points in the US food & ag supply chain”. AgFunderNews.
  7. Hahn, M.D., S. (March 27, 2020). Coronavirus (COVID-19) Supply Chain Update. FDA.
  8. Biscotti, L. (April 17, 2020). “Food And Beverage Companies Evolve, Innovate And Contribute Amid COVID-19 Crisis.” Forbes.

Market for Plant-Based “Meat” to Exceed $320 Million by 2025

By Food Safety Tech Staff
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According to a new report by Global Market Insights, the plant-based meat market, which is currently valued above $150 million, is expected to be worth more than $320 million by 2025. Increased consumer demand for meat alternatives can be attributed to a variety of factors: More awareness of environmental hazards linked to killing animals, animal rights issues, as well as a desire for more vegetarian-based diets due to health concerns.

On a nutritional front, the report also notes: “Plant based meat products are incomplete protein source and lack vitamin B12 which may hinder market growth. Manufacturers are researching to enhance the nutritional profile of plant based meat products by mixing high protein food sources such as quinoa which may fuel product demand.”

Specific sectors that are expected to grow are the following:

  • Pea-based meat: 10.5% CAGR from 2019 to 2025
  • Wheat-based meat: Increase to more than $40 million by 2025
  • Beef wheat-based meat: Expected to grow about 10% by 2025
  • Chicken soy-based meat (currently valued at $70 million in 2018)

Regionally, plant-based meat is anticipated to grow 10% by 2025 in North America, with the report pointing to more awareness of the risks associated with contaminated as well as adulterated meat. In Europe, the value of the market is expected to exceed $55 million by 2025.

Consumers and Foodborne Illness

Smaller Food Companies Gaining Competitive Edge

By Maria Fontanazza
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Consumers and Foodborne Illness

A recent survey gauged the revenue growth of the top 25 large food companies at just 1.8% versus small and mid-size food companies, which grew at an estimated 11-15% since 2012. Changing consumer preferences for healthier food, non-GMP, organic, gluten free, and fresh foods are presenting an opportunity for smaller companies, which have the ability to react faster and capitalize on consumer demands. In a Q&A with Food Safety Tech, Randy Burt, partner with A.T. Kearney, explains how consumer influence is changing the food landscape and impacting food safety.

Food Safety Tech: Are consumers favoring small and mid-size food companies over large food companies? If so, why? What factors come into play?

Randy Burt: Small and mid-size food companies are winning against larger food companies primarily due to their flexibility and innovation capabilities, according to A.T. Kearney’s recent report “Is Big Food in Trouble”. Consumer demands have changed and smaller companies have been much faster at offering products that align with where the consumer is today and is headed in the future.  Specifically, consumers demand more products that are free-from artificial ingredients/natural, fresh, local, offer, transparency in production practices and novel tastes and textures.  Companies able to hit key elements of those characteristics and communicating an authentic brand story are experiencing tremendous growth.

The start-up, fail-fast mentality embraced by many smaller firms allows them to test and refine products quickly without the set of formal, and time consuming, new product development processes typically required by large CPGs. Many small companies are introducing products to service a consumer need; those that resonate with modern consumer values are winning in the marketplace.  (Note that many small players are failing as well, but there are way more products being launched by food start-ups than there used to be.)

FST: What new pressures do companies face from consumers? How does this impact a company’s tactics in food safety?

Burt: Consumers today expect to know not just how their food tastes but also where it came from and how it was produced. More and more, consumers expect food companies to source food sustainably and treat labor fairly and animals humanely, while eliminating certain fertilizers, pesticides and artificial ingredients.

Food companies have and must continue to develop new food safety protocols and processes to address the changes in production required to meet these consumer expectations.

FST: Is FSMA having an effect on how larger food companies are approaching business decisions mentioned in the report (i.e., acquisitions of small companies, looking at emerging brands)?

Burt: FSMA is having a broad impact on the industry and the impact is probably felt more by the smaller start-ups than the larger firms.  It is an issue that is almost inversely related to the innovation challenge the larger firms face.

Larger firms generally are better positioned to comply with FMSA. The burden of FSMA is felt more heavily by smaller firms as they have food safety processes and protocols that are less mature as compared to larger organizations.

As larger food manufacturers evaluate acquisitions of smaller players, gaps relative to FSMA certainly are a factor due to the potential cost and liability issues, but we have not seen FSMA consistently be a major barrier to acquisitions, just an important piece of the overall set of considerations.

Burt will be speaking during the opening keynote address of this year’s GMA Science Forum on Wednesday, April 19 in Washington, D.C.